Wall Street Craps – 2012 Global Ebook Finance Award-Winner

INCOME-ORIENTED ETF YIELDS FOR FEBRUARY 11, 2012: The current market is still reflecting an increasing tolerance towards risk. Money that has been in money market funds yielding zero and intermediate-term (7-10 year maturities) treasury bonds & notes yielding 2.5% are searching for higher rates of return. All that remains for these conservative investors and institutions is the all-clear signal that the return sufficiently compensates for the risk in lower quality bonds, high dividend paying equities, and high yielding preferred stocks.

The following list is comprised of ETFs that are geared towards income and income plus growth. They are ranked according to their present dividend yield with average daily volume exceeding 1 million shares for maximum liquidity and the most efficient executions.

• 7.73% JNK – SPDR Lehman High Yield Bond
• 7.48% HYG – iShares High Corporate Bonds
• 6.53% PFF – S&P U.S. Preferred Stock Index
• 3.95% XLU – Utilities Select Sector SPDR
• 3.44% DVY – iShares DJ Select Dividend Index
• 3.31% TLT – Barclays 20+ Year Treasury Bond Fund
• 3.17% SDY – SPDR S&P Dividend Index
• 2.38% DIA – SPDR Dow Jones Industrial Average
• 2.09% VIG – Vanguard Dividend Appreciation
• 1.96% SPY – SPDR S&P 500

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All of the funds that are mentioned above excluding XLU – Utilities Select Sector SPDR and TLT – Barclay’s 20+ Year Treasury Bond Fund have enjoyed spectacular price runs since last October – November. While their yields may appear attractive, their charts indicate that a correction is overdue in these issues. Bonds and preferred stock are like any asset class and are subject to periods of overvaluation, overbought conditions, and too much optimism from the public. There will be a better time in the future to take positions in these high-yield investments.

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“Some investors live or die by earnings reports. Earnings are important, but who knows if the reported earnings are accurate? A clever accountant can make earnings appear good or not so good, depending on the season or objective. There can be no subterfuge about a cash dividend. It is either paid or it is not paid. If it is paid, the shareholder knows that the company is making money. If it is not paid, no rhetoric can disguise the circumstances.”

Geraldine Weiss and Gregory Weiss ~ Authors of The Dividend Connection (1995)

INCOME-ORIENTED ETF YIELDS FOR JANUARY 27, 2012: The current market is reflecting an increasing tolerance towards risk. Money that has been in money market funds yielding zero and intermediate-term (7-10 year maturities) treasury bonds yielding 2.5% are searching for higher rates of return. All that remains for these conservative investors and institutions is the all-clear signal that the return sufficiently compensates for the risk in lower quality bonds, high dividend paying equities, and high yielding preferred stocks.

The following list is comprised of ETFs that are geared towards income and income plus growth. They are ranked according to their present dividend yield:

• 7.73%     JNK – SPDR Lehman High Yield Bond (Average volume=4,590,090)
• 7.69%     HYG – iShares High Corporate Bonds (Average volume=2,319,270)
• 7.62%     PGF – PowerShares Financial Preferred (Average volume=357,127)
• 6.99%     PFF – S&P U.S. Preferred Stock Index (Average volume=1,277,100)
• 6.78%     PGX – PowerShares Preferred Portfolio (Average volume=467,321)
• 5.42%     CVY – Guggenheim Multi-Asset Income (Average volume=239,577)
• 3.94%     XLU – Utilities Select Sector SPDR (Average volume=7,383,240)
• 3.70%     PEY – PowerShares High Yield Dividend (Average volume=518,074)
• 3.44%     DVY – iShares DJ Select Dividend Index (Average volume=1,849,590)
• 3.30%     TLT – Barclays 20+ Year Treasury Bond Fund (Average volume=8,469,930)
• 3.23%     SDY – SPDR S&P Dividend Index (Average volume=1,278,950)
• 2.94%     VYM – Vanguard High Dividend Yield (Average volume=541,831)
• 2.56%     IEF – Barclays 7-10 Year Treasury Bond Fund (Average volume=946,802)
• 2.44%     DIA – SPDR Dow Jones Industrial Average (Average volume=7,470,160)
• 2.14%     VIG – Vanguard Dividend Appreciation (Average volume=1,342,150)
• 2.05%     SPY – SPDR S&P 500 (Average volume=191,876,000)

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“Approximately 75% of the companies traded on the New York Stock Exchange pay cash dividends to their shareholders. It is perhaps the most sacred of all corporate financial components and the measure of value we hold in the highest regard.”

Geraldine Weiss and Gregory Weiss ~ Authors of The Dividend Connection (1995)